The main purpose of preparing a Trial Balance is: MCQ with Answer and Explanation

Question
The main purpose of preparing a Trial Balance is:
A. To check the arithmetical accuracy of ledger accounts
B. To know the financial position
C. To detect frauds
D. To prepare final accounts
Answer: Option A
Solution (By JKSSB Mock Tests)
Trial balance ensures that total debits equal total credits, verifying posting and balancing accuracy.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
A company's earnings before interest and tax (EBIT) is ₹2,00,000. It has 12% debentures of ₹5,00,000. The interest coverage ratio is:
A. 3.33 times
B. 1.67 times
C. 2 times
D. 4 times
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Interest = 12% of 5,00,000 = 60,000. Interest coverage ratio = EBIT / Interest = 2,00,000 / 60,000 = 3.33 times.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is a 'Voucher' in a manual accounting system?
A. Both B and C
B. A cash memo
C. A printed receipt
D. A documentary evidence of a transaction
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Voucher includes any documentary evidence like cash memo, invoice, receipt.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Social accounting is mandatory for:
A. No universal mandate, but some large entities voluntarily disclose
B. All public sector units
C. All banks
D. All companies
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Social accounting is largely voluntary except for some mandated disclosures like CSR.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Accountancy and Statistics 3179 Economy GK 2220 English 15164 Computer 5279 Current Affairs 575
Practice Mix
Which of the following is an indirect tax in India?
The valve between the left atrium and left ventricle is the:
A person faces north. He turns 45° left, then 90° right, then 45° left. Which direction is he facing?
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is: